Indian Oil Corp Clinches $3-Billion Gas Deal in Iran
Tehran: In its biggest ever investment abroad, Indian Oil Corporation
has clinched a $3 billion deal to develop a gas block in the gigantic
South Pars gas field of Iran and sell LNG from it. IOC will partner
Iran's Petropars in bringing to production one of the 30 phases planned
to develop the 500 sq mile south Pars field that is estimated to hold
436 trillion cubic feet of gas reserves, officials said.
The two will also put up a liquefaction plant in south Iran which
is designed to make available nine million tonne per annum of LNG
to be exported to India and other countries.
"The deal will be formally signed after it is approved by the Iranian
authorities," an official said, adding that IOC director (business
development) Naresh K Nayar and Petropars chairman Akbar Torkan are
tying up loose ends.
The Indian company will have 40 per cent stake in the upstream development
with the remaining being with Petropars. In the liquefaction plant,
IOC would have 60 per cent stake and the marketing rights to sell
the entire nine million tonne of LNG.
Petropars is a subsidiary of National Iranian Oil Co. The NIOC has
60 per cent stake in Petropars while Iran's IDRO (Industrial Development
and Renovation Organisation) Pension Fund has the remainder.
The South Pars gas block is near the Yadevaran oilfield, in which
Tehran has offered 20 per cent stake to New Delhi in lieu of India
buying five million tonne per annum of LNG. Yadevaran oilfield is
said to have a potential to produce 300,000 barrels per day.
FAIR USE NOTICE. This document contains copyrighted material whose use has not been specifically authorized by the copyright owner. India Resource Center is making this article available in our efforts to advance the understanding of corporate accountability, human rights, labor rights, social and environmental justice issues. We believe that this constitutes a 'fair use' of the copyrighted material as provided for in section 107 of the U.S. Copyright Law. If you wish to use this copyrighted material for purposes of your own that go beyond 'fair use,' you must obtain permission from the copyright owner.